De-Risking Story Continues for Uranium and Vanadium Developer
Date: Sep 26, 2018
September 25, 2018 (Investorideas.com Newswire) Vanadium and uranium are two of the few commodities whose prices have advanced recently, and Michael Ballanger discusses one company that is developing projects for both elements.
Western Uranium Corp.
Symbol: WUC.CNX / WSTRF.US
Industry: Developer, U.S.-based uranium and vanadium
Primary Asset: Sunday Mine, Colorado, U.S.A.
Western Uranium and Vanadium Corp. (WUC:CSE; WSTRF:OTCQX) was first introduced to me by a colleague back in the spring of 2016 after which I determined that this was a classic valuation story where the fundamentals greatly dwarfed the share price and market capitalization. At the 2016 prices for uranium ($22/lb) and vanadium ($3/lb), I determined that WUC at CA$1.70 was undervalued by a factor of around 70% and set a $5.25 target price. After a number of corporate mis-starts and two years of poor pricing, the share price hit an all-time low this past summer at $0.54 despite a substantial recovery in uranium and vanadium prices. Accordingly, I decided to look more intensely at the factors inhibiting the share price and at the outlook for both commodities in light of trade wars, sentiment, demand and macroeconomic changes. As a result of this, I advised followers to consider acquiring a CA$0.68 unit financing being offered last June and later published a report entitled: “Western Uranium and Vanadium Corp.: Undervaluation Woes are Ending” (link) and set target prices at six months US$3.40 and twelve months at US$6.80.
Since then, the shares have advanced from CA$1.40 to CA$2.44, hitting a new 52-week high today. The shares appear poised for a technical breakout and continued ascent as the undervaluation continues to dissipate.
